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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4546
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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Can anyone explain to me exactly what the changes are in relation

Resolved Question:

Can anyone explain to me exactly what the changes are in relation to Pensions next April. Is it true that I can take out the money from my Pensions schemes? I think I was contracted out of SERPS - how would this be effected?
Submitted: 3 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 3 years ago.
Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

Yes, it is certainly true that you can take money out of your pension schemed nearly tax free. Pensioners will get a 25 per cent tax-free slice of multiple cash lump sums taken from their pension pots, under the latest sweeping changes that will come into effect next April.

Savers will no longer get just one chance to take a single tax-free lump sum worth 25 per cent of their pension pots. Instead they will be able to dip into their pension when they like and get the first 25 per cent of all withdrawals tax-free with the remainder taxed as income.

Savers will also no longer need to take out an annuity to provide retirement income when they die and the 55 per cent death tax on pension pots still invested has been axed.

The SERPS would stand effected in the same way. Kindly refer the following resource for greater detail.

http://www.thisismoney.co.uk/money/pensions/article-2780559/Dont-April-fool-pensions-change-From-freedom-flexibility-tax-guide-years-sweeping-reforms.html


I am sure this would help.

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Warm Regards
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